Banking system resilience and stability: constructing a composite indicator for developed countries

The aim of this paper is to empirically appraise the health of banking systems by applying a new theoretical framework based on complex system theories. For doing so we propose a composite indicator for analysing the resilience and stability of banking systems for a group of advanced economies inclu...

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Detalles Bibliográficos
Autores: Ruza Paz-Curbera, Cristina, Cuesta González, Marta María de la, Paredes Gázquez, Juan Diego
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universidad Nacional de Educación a Distancia
Repositorio:e-spacio. Repositorio Institucional de la UNED
Idioma:inglés
OAI Identifier:oai:e-spacio.uned.es:20.500.14468/11872
Acceso en línea:https://hdl.handle.net/20.500.14468/11872
Access Level:acceso abierto
Palabra clave:resilience
financial stability
banking system
composite indicator
financial crises
macroprudential regulation
Descripción
Sumario:The aim of this paper is to empirically appraise the health of banking systems by applying a new theoretical framework based on complex system theories. For doing so we propose a composite indicator for analysing the resilience and stability of banking systems for a group of advanced economies including the group of G7 countries, Spain and Portugal. The empirical results reveal quite different patterns in the aftermath of the financial crises. While some countries have improved its relative position within the ranking, we find others evolving just in the opposite direction. The main purpose of the indicator is not to make predictions of future banks’ behaviour, but rather to use it as an early warning system for policymakers and supervisors in identifying signs of weakness, as well as a useful tool to identify the best practices.